The Leader of the Opposition, Hon. Joel Ssenyonyi has asked government to stop any further allocation of funds to Inspire Africa Coffee, a private entity financed by government to establish a coffee factory as a tertiary hub for last mile coffee value addition in Ntungamo District.
Ssenyonyi said the financing should be halted until government comes out clearly on the terms of the partnership, which he said could not be established when he visited the factory on 24 December 2025 with other MPs on the Shadow Cabinet.
“We found that there is no Memorandum of Understanding between Government of Uganda and this entity. So the manner in which money was extended to the entity is not clear. It is wrong for tax payers’ money to be spent without any clearly defined binding relationship and no documentation whatsoever,” said Ssenyonyi.
He explained that although the proprietor, Nelson Tugume attempted to explain a co-investment arrangement between the parties, there was no clarity on whether this would result into a joint shareholding, a grant arrangement or a bail out.
The LoP said this as he presented a report of his oversight visit to the factory at a sitting of the House chaired by the Speaker Anita Among on Tuesday, 11 February 2025.
Ssenyonyi added that there are doubts on the value for money invested in the factory, cognizant that Tugume could not establish the amount government has so far injected.
“Government should explain how much money has so far been injected into this project. The cost benefit analysis of investing in this entity should be examined,” he said.
He expressed concern that as long as usage of tax payers’ money is shrouded in mystery, there will always be suspicion about such bailouts given that they are accessed by a few people.
Ssenyonyi called for construction of a similar factory in Bugisu and central region as part of government commitment in the National Development Plan III saying that it will be difficult for farmers to transport coffee from far-flung districts across the country to Ntungamo for processing.
The Opposition leader asked government to come out with a clear procedure on how private entities can get government support.
“Uganda has a lot of young and innovative entrepreneurs who only lack funding. If the government comes out clearly on the formalities, then more Ugandans could benefit as opposed to just a few,” he added.
During the 2023-2024 financial year, government undertook to establish ‘a Tertiary Hub for last mile Coffee Value Addition” in Ntungamo District, through the Science, Technology and Innovation Secretariat in the Office of the President, under a private partnership arrangement with the Coffee Investment Consortium Uganda (CICU) and Inspire Africa Coffee.
According to Tugume the factory is expected to produce various coffee products including; Instant Coffee, Drip Coffee, Malt Coffee, Coffee energy drinks as well as beauty Cosmetics.
Uganda is currently the leading coffee exporter in Africa, and the second
largest coffee producer in Africa having exported 6.13 million bags in Financial Year 2023/2024 valued at US$1.14 Billion.
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